Maruti Suzuki Q1 profit jumps 56pc

Maruti Suzuki India Ltd, India's top-selling carmaker, said on Tuesday first-quarter net profit rose 56 percent helped by lower costs, favourable foreign exchange rates and higher sales, but still missed bullish analyst estimates.

Maruti, controlled by Japan's Suzuki Motor Corp, said profit for the April-June quarter was 11.9 billion rupees ($185.94 million), up from 7.6 billion rupees in the same period a year earlier. Analysts had expected a profit of 12.35 billion rupees, according to Thomson Reuters I/B/E/S.

Net sales rose about 18 percent to 130.8 billion rupees, the company said, as India's car trade continues to grow. India is expected to become the world's third-largest car market by 2020, moving up three places.

"During the quarter, higher volumes, cost reduction efforts, lower sales promotion expenses, and favourable foreign exchange helped improve the performance," the company said in a stock exchange statement.